inflation prone government. Step two argues independence is the solution to that problem. This paper challenges that case and …

Since 1990, a number of countries have adopted inflation targeting as their declared monetary strategy. Interpretations … of the significance of this movement, however, have differed widely. To some, inflation targeting mandates the single …-minded, rule-like pursuit of price stability without regard for other policy objectives; to others, inflation targeting represents …

expectations that helps to dampen the fall in output and inflation at the outset of the liquidity trap. …

may completely stabilize European output after unanticipated fiscal policy shocks. With anticipated fiscal policy shocks …